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Railroad Deregulation and Consumer Welfare

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  • Ellig, Jerry
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    Abstract

    Railroad deregulation under the Staggers Act of 1980 generated rate reductions, service enhancements, and other improvements in economic welfare. These benefits appear to be widely shared. There is a low likelihood that some captive shippers pay rates that exceed the rates they would have paid under regulation, some evidence that some captive shippers have paid rates that regulators would judge "unreasonable," and strong evidence that captive shippers pay higher rates than non-captive shippers. The source of deregulation's benefits is as noteworthy as their size and distribution. The principal benefits of railroad deregulation stem from cost reduction, not just a closer alignment of prices with pre-deregulation cost levels. Copyright 2002 by Kluwer Academic Publishers

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    Bibliographic Info

    Article provided by Springer in its journal Journal of Regulatory Economics.

    Volume (Year): 21 (2002)
    Issue (Month): 2 (March)
    Pages: 143-67

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    Handle: RePEc:kap:regeco:v:21:y:2002:i:2:p:143-67

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    Web page: http://www.springerlink.com/link.asp?id=100298

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    Cited by:
    1. Kristen Monaco & Taggert J. Brooks & John Bitzan, 2006. "A time series analysis of wages in deregulated industries: A study of motor carriage and rail," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 105-118, May.
    2. Russell Pittman, 2010. "Against the Stand-Alone-Cost Test in U.S. Freight Rail Regulation," EAG Competition Advocacy Papers 201001CA, Department of Justice, Antitrust Division.
    3. Rowangould, Gregory, 2013. "Public financing of private freight rail infrastructure to reduce highway congestion: A case study of public policy and decision making in the United States," Transportation Research Part A: Policy and Practice, Elsevier, vol. 57(C), pages 25-36.
    4. John Bitzan & Theodore Keeler, 2014. "The evolution of U.S. rail freight pricing in the post-deregulation era: revenues versus marginal costs for five commodity types," Transportation, Springer, vol. 41(2), pages 305-324, March.
    5. Coublucq, Daniel, 2013. "Econometric analysis of productivity with measurement error: Empirical application to the US Railroad industry," DICE Discussion Papers 95, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    6. Nancy L. Rose, 2013. "Learning from the Past: Insights for the Regulation of Economic Activity," NBER Chapters, in: Economic Regulation and Its Reform: What Have We Learned?, pages 1-23 National Bureau of Economic Research, Inc.

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